India Increases Duties on Fuel Exports Amid Global Price Volatility

Diesel exports will now attract a total duty of Rs 25.5 a litre, up from Rs 15.5 a fortnight ago, as per a government order issued Monday (August 3). Aviation turbine fuel goes to Rs 22 a litre from Rs 14.5 and petrol to Rs 3.5 from Rs 2.5. The government said the petrol increase is intended to secure domestic supply. The revision comes as crude prices swing on the back of the Iran conflict. Oil prices fell on Monday after US President Donald Trump indicated that fresh talks with Iran could be on the table, even as Tehran denied that negotiations were underway. The finance ministry notification puts the revised rates into effect from August 3. Export duties on diesel and ATF were first imposed on March 27, as tensions in West Asia escalated, with the rates reviewed every fortnight since. Petrol exports were brought under the levy from May 16. There is no change in duty rates on petrol and diesel cleared for domestic consumption, the ministry said. The windfall tax was introduced to keep more fuel available at home by making exports less attractive. It was also meant to stop exporters from profiting off the gap between domestic and international prices, which widened as global crude climbed after the war began.